HOUSTON INDUSTRIAL

Monthly Market Snapshot

NOVEMBER 2020

Market Highlights
Market Activity
Vacancy at 8.8%. Overall vacancy is at 8.8%, up
October 2020 October 2019
from Q3 2020 at 8.6%, and a year ago at 6.7%.
Year-to-Date Year-to-Date
The increase in vacancy is due in part to 24.7
million sq. ft. delivered to the market so far in Vacancy 8.8% 6.7%
2020, of which half is vacant. In addition, there is
15.8 million sq. ft. currently under construction, Availability 13.3% 9.0%
with 65% of that space available for lease. The Net Absorption (SF) 9,953,853 6,468,686
vacancy rate for Class A properties is at 18.1%,
Leasing Activity (SF) 22,436,930 27,119,634
up slightly from Q3 2020 at 18.0%, although up
more significantly from October 2019 at 12.5%. Deliveries (SF) 24,637,635 13,480,962
The Houston industrial market has recorded
Under Construction (SF) 14,539,065 19,439,561
22.4 million sq. ft. of leasing activity—
which is comprised of both new leases and NNN Avg Asking Rent (PSF) $0.64 $0.61
renewals—while net absorption (move-ins
minus move-outs) is at 10 million sq. ft., up
from 6.5 million sq. ft. year-to-date October
2019. The asking price for industrial properties
is currently at an average monthly rate of $0.64
per sq. ft., up from this time last year at $0.61 Supply & Demand
per sq. ft., due primarily to the new product Deliveries Net Absorption
added to the market. 25
Millions (SF)

20
Food processing and cold storage facility
sells in Sugar Land. 10631 Corporate Drive 15
Realty, LLC purchased a Class A corporate
10
office and food processing facility at 10631
Corporate Drive in Sugar Land which consists 5
of 153,000 sq. ft. of combined office, freezer-
0
cooler warehouse, and food processing 2015 2016 2017 2018 2019 2020 YTD
space. The NAI Partners team of Zane Carman
and Clay Pritchett represented the buyer, a
nationwide food manufacturing company, on
the transaction. The seller, Midway Corporate
Partners was represented by JLL. Construction Activity
Port Houston monthly container volumes Available Leased
rise. Port Houston’s container activity in Southwest
September surpassed the record level of Southeast
TEUs for the same month last year, despite the North
negative impacts of the COVID-19 pandemic,
Northwest
which has slowed global commerce this year.
Northeast
This is the first turn toward growth since the
South
effects of the pandemic in March. Total tonnage
0 1 2 3 4 5 6
at Port Houston in the month of September Millions (SF)

showed a turnaround, rising by 1%, with imports

and exports of autos increasing, along with
grain and bulk again showing increases. Steel Leta Wauson
and breakbulk cargo was down in September. Director of Research
leta.wauson@naipartners.com
tel 713 275 9618